American CryptoFed, a Wyoming-based decentralized autonomous organization (DAO), has withdrawn a request to register two tokens with the U.S. Securities and Exchange Commission (SEC) as securities, a Tuesday filing shows.
“CryptoFed is seeking withdrawal of the Registration Statement Form 10 because CryptoFed’s Locke token and Ducat token are not securities,” the filing read.
The DAO, which describes itself as a “monetary system with zero inflation, zero deflation, zero transaction costs,” filed last year to register the tokens with the SEC for use in a secondary market and in refundable auctions at a higher value than their original purchase price from CryptoFed.
The SEC stopped the registration in November, saying the company had filed a “materially deficient and misleading registration form.”
The project had wanted to issue ducat, an algorithmic stablecoin, and locke, a governance token with a maximum supply of 10 trillion whose holders could propose strategies and vote on proposals concerning the DAO.
In the July 5 filing, American CryptoFed said the tokens had not been issued or sold to users.
In July last year, Wyoming legally recognized American CryptoFed. That determination came after the state became the first in the U.S. to recognize DAOs as a type of limited liability company.